The used automobile industry in India is rapidly growing, thanks to the innovative start-ups that uses the technology to make it easier to buy and sell used cars easily. Cars24 is the game changer company in this industry. Cars24, which started in 2015, has changed the way people trade their used cars in market by making it easy, safe, and quick for both individuals and dealers.
But what makes Cars24 so famous, and how does it make money? Let’s take a close look at the Cars24 business model and how its making money from this business.
| Company / Brand name | Cars24 |
| Establishment year | 2015 |
| Headquarters | Gurugram, Haryana, India |
| Founder / Owner | Vikram Chopra |
| Industry | Automative |
| Net worth / Last reported valuation | $3.23 billion |
| Total revenue in 2024 | ₹6,917 crore to ₹6,981 |
Learning about how Cars24 Operates:
Cars24 is an online portal that makes it easier to purchase and sell used cars. The company uses the technology to fix the problems that the traditional used car market has, such as lack of transparency, uncertain prices, long processes, and a lack of trust issue between the parties.
1. Groups of Customers:
Individual Sellers: People who own cars and want to sell them quickly and for a fair price.
Dealers: Used car dealers, who are looking for reputable stock that has been checked for quality.
Buyers: People who want to buy certified, well-inspected pre-owned cars (via Cars24).
2. The Value Proposition
Cars24 says it would provide you rapid bids, make the paperwork easier and faster. It also pay you quickly, and be open about the process, because Cars24 loves transparency. It makes it easy for both buyers and sellers by using ML/AI-power driven tools to figure out how much a car is worth, offering free auto inspections, and taking care of all the RTO paperwork.
How does Cars24 make money?
1. Fees for services and commissions
Commissions and service fees is the main source of income of Cars24’s. Cars24 buys the car directly from the seller at a price that both parties agree on when someone sells a car through the platform.
Then, it sells the car to dealers or individual buyers and makes a profit on each sale. Cars24 charges a nominal fees for processing, inspection, and doing paperwork.
2. Profit Margin on Retail Sales
Cars24 has grown into direct retail sales, selling pre-owned cars directly to customers through both online and offline stores. The company makes money here by charging more for value-added services like providing extra warranties and insurance.
3. Financing
The business gives buyers finance services and dealers working capital loans. Cars24 makes money by giving out automobile loans and charging interest and processing costs. This lets them get into the profitable auto-finance market.
4. Other Services
Company generates Extra money from the services like insurance, extended warranties, and after-sales support. These extra services not only make things easier for customers, but they also provide you a chance to make more money.
Main Reasons for Growth:
- Integration of Advance Technology: Cars24 uses machine learning and AI powered pricing algorithms and a digital-first strategy to automate processes and paperwork.
- Pan-India Service: It has hundreds of branches in main cities, which makes it easy to reach and dependable.
- Expanding internationally: The company has entered in to the UAE, Australia, and Southeast Asia market, which has helped it make more money.
Conclusion:
Cars24’s business policies is a great example of how to use new advanced AI technology to fix various problems that have been present for a long time in the market.
Cars24 has developed a strong and profitable business model by focusing on transparency, honesty, ease of use, and trust. They have gained the trust of millions of users. Cars24 is a powerful player in the used automobile market since it has a wide range of ways to make money, from commissions to financial services. This makes it more stronger in the used car world.
